XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

SHARE-BASED COMPENSATION (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Summary of Stock Option Activity Under All Stock Plans | A summary of stock option activity under all stock plans for the nine months ended September 30, 2018, is presented as follows (in millions, except per share amounts):
|  | Stock Options Outstanding
|  | Number Outstanding |  | Weighted Average Exercise Price Per Share
Balance at December 31, 2017 |  | 7.2 |  |  | $ | 164.16 |
Granted |  | 0.5 |  |  | $ | 470.83 |
Exercised |  | (1.2 | ) |  | $ | 124.29 |
Forfeited/expired |  | (0.1 | ) |  | $ | 228.26 |
Balance at September 30, 2018 |  | 6.4 |  |  | $ | 196.05 |
Summary of RSU Activity | A summary of RSUs activity for the nine months ended September 30, 2018, is presented as follows (in millions, except per share amounts):
| Shares |  | Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2017 | 2.1 |  |  | $ | 209.55 |
Granted | 0.8 |  |  | $ | 425.22 |
Vested | (0.8 | ) |  | $ | 194.03 |
Forfeited | (0.1 | ) |  | $ | 271.63 |
Unvested balance at September 30, 2018 | 2.0 |  |  | $ | 290.10 |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense for the three and nine months ended September 30, 2018, and 2017 (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Cost of sales - products | $ | 10.1 |  |  | $ | 7.0 |  |  | $ | 27.2 |  |  | $ | 20.5 |
Cost of sales - services | 4.5 |  |  | 3.7 |  |  | 12.5 |  |  | 10.4 |
Total cost of sales | 14.6 |  |  | 10.7 |  |  | 39.7 |  |  | 30.9 |
Selling, general and administrative | 35.9 |  |  | 30.0 |  |  | 98.1 |  |  | 82.3 |
Research and development | 20.2 |  |  | 15.2 |  |  | 54.4 |  |  | 40.9 |
Share-based compensation expense before income taxes | 70.7 |  |  | 55.9 |  |  | 192.2 |  |  | 154.1 |
Income tax benefit | 14.9 |  |  | 18.4 |  |  | 40.0 |  |  | 50.3 |
Share-based compensation expense after income taxes | $ | 55.8 |  |  | $ | 37.5 |  |  | $ | 152.2 |  |  | $ | 103.8 |
Schedule of Estimated Fair Value of the Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions | The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s stock plans and rights to acquire stock granted under the Company’s ESPP. The weighted average estimated fair values of stock options and rights to acquire stock under the ESPP, as well as the weighted average assumptions used in calculating those fair values, were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Stock Options |  |  |  |  |  |  |
Risk-free interest rate | 2.7 | % |  | 1.7 | % |  | 2.7 | % |  | 1.8 | %
Expected term (in years) | 4.3 |  |  | 3.9 |  |  | 4.3 |  |  | 4.1 |
Expected volatility | 32 | % |  | 26 | % |  | 33 | % |  | 25 | %
Fair value at grant date | $ | 159.67 |  |  | $ | 74.37 |  |  | $ | 145.15 |  |  | $ | 65.12 |
ESPP |  |  |  |  |  |  |
Risk-free interest rate | 2.5 | % |  | 1.2 | % |  | 2.1 | % |  | 1.2 | %
Expected term (in years) | 1.3 |  |  | 1.2 |  |  | 1.3 |  |  | 1.2 |
Expected volatility | 31 | % |  | 29 | % |  | 32 | % |  | 28 | %
Fair value at grant date | $ | 153.72 |  |  | $ | 85.23 |  |  | $ | 135.84 |  |  | $ | 79.77 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of total share-based compensation cost, including the amounts attributable to each share-based compensation plan and any related tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the weighted-average grant-date fair value of equity options or other equity instruments granted during the year. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d)(1) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
Name: | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration